VideoEgg Gets $15 Million

Online video technology company VideoEgg has secured another $15 million in funding led by Focus Ventures. WPP, August Capital, and Maveron also contributed to the round.

"It's all about the right mix to win in this market, which requires insight into the needs of marketers," said Steven Bird, general partner of Focus Ventures. "VideoEgg has made significant traction selling advertising solutions."

Founded in 2005, VideoEgg manages the Eggnetwork, along with offering clients opt-in ad technology that stands in contrast to unpopular pre-roll video advertising.

Today, VideoEgg powers 680 million video plays per month, from 23 million unique users. Including more than 80 social networks, its better-known clients include AOL and Bebo. In an effort to further expand its ad network, VideoEgg last month took it upon itself to start selling ads directly into applications developed by the Facebook community.

Video networks in general are booming, with U.S. online video ad expenditures expected to total $775 million in 2007--up 89% from last year, according to market research firm eMarketer. Still, that number only represents about 4% of the projected 2007 U.S. online ad spend of $19.5 billion.

In April, WPP invested an unknown sum in VideoEgg with the intention of exploring its various ad-serving methods.

Rob Norman, CEO of GroupM Interaction, WPP's investment arm, said working with VideoEgg "provides a more focused way for our clients to participate in the growing world of social networks and user-generated content."

Next story loading loading..